FARMING / AGRICULTURAL INVESTMENTS

Over the last few years we have seen a surge of interest and investment in the agricultural industry. This growth trend is due to a large number of significant structural developments in the global economic- and geopolitical picture. Investment in agricultural lands would be a long term and fundamental support for investors for their Alternative Asset Management plans.

 

The primary driving force behind the upward trend in this sector is a growing population around the world. By some estimates the world’s population has reached an important milestone of 7 billion people in October 2011. Many have accurately dubbed this expansion as a ‘population boom’. Simply put, there are now more mouths to feed than ever before in the history of mankind which creates unprecedented levels of demand.

 

These developments have also been coupled with supply concerns. Unpredictable weather conditions in certain areas, lack of arable farmland and large segments of the global population moving from rural areas to city centres has also placed a measure of strain on traditional agricultural supply lines.

 

Logic would therefore dictate that as supply dwindles (or at least remain constant) and demand grows, that prices of these commodities will continue to rise. This scenario has therefore created Ethical Investment opportunity for investors.

 

Across world markets, shares in agricultural companies (whether they’re involved in actual production or supply of equipment) have been considered to be great buying opportunities or at the very least avenues for investors to safeguard against a backdrop of economic uncertainty. For the savvy investor, opportunities have also arisen where capital can be directly committed to the purchase and cultivation of lucrative blocks of arable farmland.

 

At Lakewood Asset Management we aim to provide investors with access to these types of Investment opportunities.

 

Through a careful and stringent process of due diligence we identify asset purchase opportunities in the agricultural space that adhere to 6 core principles:

 

• Robust legal framework where the investors’ ownership rights are protected
• Projects which can provide an above market rate of return on a risk-adjusted basis.
• Investment opportunities Investment opportunities in commodities that show a strong outlook for the medium- to long term
• Proven track record of crop success in the project or by the management company
• Where possible a strong social impact in the surrounding community
• Experienced and capable management team with relevant experience

At present Lakewood is promoting 3 different projects in the agricultural sector that qualifies on the above criteria.